WAM Abu Dhabi, 16th May 2013 (WAM): Masdar, Abu Dhabi’s renewable energy company, and the International Finance Corporation (IFC), the private sector arm of the World Bank, announced their intention to collaborate on the advancement of clean energy projects.
The Memorandum of Understanding (MoU), signed yesterday in Washington, D.C., paves the way for the two parties to explore opportunities for the development of large-scale projects including: carbon capture, use and storage; cleantech venture capital and private equity fund co-investment; solar desalination and utility-scale solar and wind power projects.
The newly-formed cooperative effort will investigate options for the IFC to finance up to $1.5 billion using financial products tailored to projects that may be developed by Masdar.
“Over one billion people worldwide have no access to electricity and another billion have only intermittent access,” said Masdar CEO Dr. Sultan Ahmed Al Jaber.
“Utility-scale clean energy projects like the ones this agreement is exploring can play a critical role in meeting this shortfall and advancing low-carbon power around the world.
“This MoU couples our utility-scale clean energy development expertise with our energy access work and, as such, fits perfectly with our strategic direction. We look forward to working with the International Finance Corporation to advance renewable energy and novel cleantech projects wherever they have the greatest social, environmental and economic impact,” added Dr. Al Jaber.
Formed in 1956 under the World Bank umbrella, the IFC invests in for-profit commercial projects that reduce poverty and promote economic development. Although focused largely on projects in the developing world, the IFC also explores opportunities in its other member states where novel infrastructure projects can have global impacts.
“By encouraging private enterprise, IFC creates opportunities for people to escape poverty and achieve a better standard of living,” said IFC CEO Jin-Yong Cai. “This agreement will help support that work. Scaling up low-carbon, renewable power and solar desalination projects in developing countries provides sustainable access to energy and boosts economic growth.” Renewable energy remains the fastest growing sector in the energy industry. According to the most conservative estimates by Bloomberg New Energy Finance, renewables will account for 70 percent of the new power generation capacity added worldwide to 2030, when renewables will make up half of installed power generation capacity. Global investment in renewables is also expected to show robust growth for the foreseeable future. In 2012, $268 billion was invested in renewable energy worldwide. That figure is expected to reach an estimated $750 billion annually by 2030, accounting for 73 percent of total annual investment in power generation.